While it may once have been hard to believe that the U.S. Small Business Administration reported more than 50 percent of businesses in the U.S. are based in the owner’s home, these unprecedented times make anything a reality! Unfortunately, many of these home-based businesses do not carry the NH commercial insurance required. In general, these owners believe that specific policies that protect their business from liabilities are unnecessary. While this belief is misguided for various reasons, the general census comes down to the owners not understand how exposed they are to many forms of liabilities.
Understanding the need for commercial insurance in home-based businesses is crucial. However, the goal is to obtain this understanding before the actual need for coverage is at play. Let’s take a look at some of the types of business insurance one may consider.
Commercial Insurance NH
Often, people assume that their homeowner’s coverage will extend to their at-home business. However, this is not the case. For instance, if your home is broken into and your personal items are stolen, your homeowner’s policy will generally reimburse you for your losses. But, if the situation involves business items stolen, it’s unlikely that your homeowner’s policy will cover the loss. Unless, of course, you had that specific detail built into the policy.
Instead, a commercial property insurance policy that covers your business property is in order.
General Liability Insurance
Your business is liable for injuries sustained to others while on your property. Whether a client, customer, employee, or delivery person, your company is responsible for any injuries. Of course, this means that you are liable – but not on a personal level.
Your homeowner’s insurance covers personal liabilities for guests injured in your home but excludes those liabilities connected to the operation of a home-based business. A business liability policy (also called a general liability policy) can be purchased separately to provide adequate liability protection. In some cases, endorsements can be added to your homeowner’s insurance policy, allowing it to cover business liabilities.
Depending on the profession you work in, a professional liability policy may be in order. These policies protect you against liabilities encountered by individuals working in your career. Examples include errors and omissions insurance for those in the financial industry, malpractice insurance for those in the medical field, or the more generalized professional liability insurance.
Insurance is a product designed to protect your finances from the fallout of risk exposure. Unfortunately, it can’t protect you from the actual risks you encounter. As a business owner, you deal with risk daily by exposing yourself to liabilities that you may not be able to offer financial recompense. Unless you benefit from insurance backing you up, don’t let your business’s fate rest on luck and hope. By obtaining insurance coverage, you’re ensuring a financial foundation that allows you to achieve all your business goals.
Workers Compensation Coverage
Chances are if you have employees, you’ve heard of worker’s compensation coverage. Bringing peace of mind to workers, worker’s compensation provides retention of a portion of the employee’s income. This insurance is utilized should an employee be unable to work due to an injury obtained on the job.
Because you’re responsible for providing a safe environment for your employees, worker’s compensation insurance also protects your business. Protected from the possibility of being sued by the employee, you can have peace of mind from all angles. Even if your company is small enough that you are not legally required to carry it, worker’s compensation is still a valuable coverage to consider.
At Morin Insurance Agency, we’re here to help keep your business protected. For more information on commercial insurance in N.H., MA, CT, and other New England areas contact our team today by calling (860) 664-0072.